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New-York tribune. [volume] (New York [N.Y.]) 1866-1924, August 28, 1917, Image 1

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W K A T H F R
Generally ?'???' to-day and to-mnrrow.
Ircsh south ?sind?,
lull Keport on Tefe II
^amtm**^ F ; ?a ? t fn le
First to Last ? the Truth: News ? Editorials ? Advertisements
Eritumt*
CIRCULATION
Over 100,000 D*I?f
Net Paid. Non-Returnabie
V()1 IAWII NO. 25-B53
(op.rl|l,l 19 It
it,* Tribune Ass'aJ
TUESDAY, AUGUST ?28? 1917
a a
ONE CE??T
In New
York tilt
When They Shall Have Learned to Think and to Say Restoration, Then Peace by Negotiation Will Be Mora?y Passible
Wilson Acts
To Seal Up
Germany
Issues Embargo Proclama?
tion to Bar U. S. Prod?
ucts From Foe
Strict Rationing
For All Neutrals
Licenses Must Be Obtained
for All Shipments to
Europe
?WASHINGTON, Aug. Fl. Tie?:
?jar*. WUaVOi tightened the government's
corurol of exj-ort-" to-night by iaauing
in order forbidding the shipment of
?arj ?rood-, 'o Kurop"an neutral countries
under license, and by extending
: win?li licens?* ia required
?nent to the Alliea and neutrals
other than Kuropean countries to in
. - ?gar and most
of America's otlier export commodities.
In a statement accompptiying his
proc'amatior: the Preside t said one of
the hrrt inteations of the government
aould be to s.-e thai no American prod?
ucts ?re made "th.* occasion of benefit
to the enemy, cither directly or indi
re.'? :? " 0*Vcial| i ,'erpr, *ed the ord? r
is forecasting a vigorou use of the
export coatrol as a ?rar weapon and a
pol.... 0? thi atrictoat rationing of
countries eontiguoui o Gera
EspOii IS t.. i many and her allie?
ll.?o are formallj prohibited by the
President er, and this is under?
stood to mean that the export control
is aheut to ? the British sys?
tem of giving letters of ssauranee for
American cargoes. Up to now mere has
been nothing except the British block
?o'e to pu-- - niiic'it of Ameri?
tar rood? t.. (?ermany, To-night'a or?
ar in this respect accompli s he:, o':e
I pulposas sought m the trading
the enemj bill pending in Con
grr.s?.
Licenses for Bullion Hequired
i r. ? . and '? Idem I
? ?1er C .por?
f. uro pe:- n neu
merer it-guiotlon.? governing
pi omurgated l>\
the Si isury.
The Pi..... . .... conta ins the
ral of the
traa ifl li ?on of the e\
I'epartmcnt of
Commerce to the 1 | ?.dmini-tra
\ anee McCormich
- -t..-. H ? ?? the Administrativa
Boar! ? public a fes? days
?iro * ??s expla'ned tha* the action
?a? tabea mee of
license-.
President? Statement
The proclamai ob (>f the rre*'d?n?
*a? b) th' rol'
sta'a -
T**a proc
rohihition
It ia not
, .'our
On ?bVs
in'? g -ded. aid then the
?--- , meeting thi n<*eessi
?'?i the
BSerisl Orman ko\ ernment.
Aftei !J are mr
and intention to nrn Ste
li ? r is?>edi of the neutral nations
m far as our reaourc4 pet T** ? ?
*?? ? ?ed without ot *
than th?> very proper qualifications
-.e, ??? on of our surplu?
??rod-'?*. |hall not b? made the ocra
???i. of benefit to the enemy, either
ndirectly.
fe liatS have 1 .f-n prepared
of facility and expe?
dierte* I , Ural list, applicable to
and hi? sllioi and to th?
"* " ??I countru? of Huron?, brine?
?nda? control nractically all articles
"' ? ? ? ? ? ? he second list,
?pplienh'e *o all 'he other muni- M
of ake only a few addi
? of rnmmorlit'e? BOB
-?n of July
(loaer *-iuper\i?lon \e<c?**ar\
BSOI sijprr
r exports is nee
e?aar sect te th?se Euro
Bes ' . ? thin the phere of
? required for those
i '?? ed
t of th ese d tins
' ' ' ? * the ai.stive
? us to con' is
sor i linimislag the later?
'-"
v.a. neres'-ary 'or
ta? exportation of eo i bullista, ear?
??"?til reo.. , otis to be
rotary of the
<-,-e?.on
OODROW WILSON
Determined l<? I ut Off '.erman*.
?ar ff.r
tall ' ! ' rn. *
i ,. i
' already have been in
anvor?
prese
?aabsi . e United I tatea
* b America koou?
?ST b? BBCd e:e- * , M-plaif indirectly
g***-!? ?hippo??, 'r-.rii neutral SOU I
* Gen ? Administration offi
?*?i? , i topping food hip
?OBI. . w,,,-r#- -he food i?
?set] t<-, ???.- . .,,.,, engaged la manu
??"??r.g war matensl? for f'ermari
0?*.
1 h ; , States ?f
' -a nine the bio ?ad?
-, ?ar a? It applie? to
?etprra,.? 0f Amei ,,-,,. good . glv?-a thi?
' "' ' ? ? a. r? ?plausibility of
th? H . . ,,,;??*., be
?da , t ,.,?fd Stat 0
Mtsrsd the w>ir | ,., ,,.,.?, ,,f prevent
?f v.- othei
?han tmittfeeat '...i., reaching Gernsai
-. b? ',fj' Britain'?,
???te tr.a i . .,,. u., .,, d?clar?e
'?fermai blockade again?? Ormany
* bar allies.
/
A DIFFICULT JOB FOR THE PROPERTY .MAN
British Submarine
Destroys U-Boa
Torpedoes Submersible as 1
Fires on Ship and Sinks
It With Crew
AM ATLANTIC PORT, Aog. -7 D
Stmotion of a Gorman submarine wii
sll hands by a Brtl^h ?uhmarine in tl
Atlantic was described to-day by tl
capta.n of a steamer which was to
pedocil by the I -boat. The trader r?
turned here from a British port aft?
being repaired.
According to the captain of the tra?
rr, the German ?uhmarine opened gut
tire when the torpedo failed to sen
the nerchani ship to tha bottom. Th
trader'.- crew. ?ho had taken to th
boat'-, witnessed the Brriral of the Bii
iah submarine and its attack. The Get
m;.n I -boa' wa brok"n in two an
. unk by a torpedo.
lie ?teamsh'p crr^- then hoarde
their vease!, n imped her out an
reached a hnti?n port
Report Papen in Argentin?
Buenos Ayres Papers Say H?
Directs Spy Work
Rl i:\os AYRES, Aug. ?7. -.inm? 0
the newsp.pers insist that I'.ptan
Fianz von Pup?n, former (ierrnai
Military Attache at Washington, is di
recting Herman spy ?vork here. Voi
Papen is said to have been seen man?
??Tir? accompanying tierman prop?
gandiste. Reputable persons, it is de
clared, have so reported t<> th? Brit
lah ( as -ui
Von Stumm (jets "Leave"
BERLIN, Aug. 87. Dr. Von Stumm
Under Secretary for Foreign Affair?
has been granted leave of absence
owing to ill-health It is not knowr
whether he ?rill return to the Foreign
??? ba n-?.gned to some other
post. Baron Von I?em Bussche-Had
denhauscn will act in his stead.
Dr. Von Stumm was said to have
criticised an artic'e in the "North
German Gazette'' aimed at refuting
Ambassaiior Gerard's exposure of Ger?
man pre-war move?. For this reason
it i? asserted, he was granted leave
of absence, but this is ?Jr-nre?! n offi?
cial quarters.
Germanamericanisms
?he i run'?./r\tui<3. Augm'
4jftit >,t ?.?idiri. an army to P.u??ia
muat ultimately I*. i?iwn up." aa>* a mrmli'r
? ' .-e War OaTtaa hi Wn?hin.l/in And ??
l.a?) al:ea?!v t?mi|..ari/?-d ou'??*l er with
tl.oj.nia tA eee\ng il,- Colonel ?nmawhere in
Siberia.
America aod Ja-an, it ?? rumorrti in Wa?h
inglon. ara ?o-?iay Kuaaia'* Ixat friend?
f.ngiand, however, ?? ?v. Kuaaia what Albion
waa to t ranre, whi?n the latter, in 17!V!,
.oined ?he word "Albion prrfld? '"
Well, the iinr? In? new BHSSfllfl Iran? en
A.?erica aiel BBS I i?lr.?r ?h? turn? away
from Kr.fc-lariil, ? ho though involuntarily,
ta? passhad ha? ,n'" Baa path ei r?Miiuti?a,
? - feSBaaS ti., ptmstrtei ti mr,d?rri Ruaaia try
in. IB r."'luilru. ? h?r??lf upon tha will of
irr pacatte, v .11 la?' _
>.???.? i % ? ikm**. n?n CAMP i rr?>\.
Mr.laraday. ?aOBBBBa' r:B?h
! , ? . ? reeft ? l*eoa N.I toa
i . ? --i r v -
ernte.
Wilson Assures Moscow
- ?-? ? ? a? ??a? ?a???aa??ams??s'*?w??BBS?jasaSOSBBSssaU|smSa?sSS ?moma?m? ?a
Council of U. S. Support
Expresses Confidence That Russia Will
Triumph Over Her Enemies, Within and
Without; Washington Believes Kerensky
Has Sounded "Ultimatum" to Anarchy
WASHINGTON, Aug. 17. Trepide
Wilson to-day pledged to New Uu*-?
the limitlf ? aid of the United Stati
In a messagS to the National ( ou
cil. at MOSCOW, the President as-;ur
, Premier Kerensky the support
America In his determination that "?<
? attempt? with armed force ajarr? *
peuple'^ power Will be crushed wi'
I blood and iron "
l he President's offical no'? to tl
Moscow I onference, through Koroasb
w leider of the new po-ver in Ru??i
; win brief but expressive. It follows
1 President or the Nat?mal Counri
A s*??-))!1)/?/, Moscow:
I take the liberty to ?end to tht
, members o' the great council now
meeting in Moscow the cordial greet
ings of their friends, the people o(
the Uaited State.?, to express theii
confidence in the ultimate triumph
i of ideals of democracy and self-gov?
ernment agamst all enemies within
and without, and to give their re?
newed assurance of every material
and moral assistance they can e\
tend to the government of Russia in
' the promotion of the common cause
in which the two nations are unsel
tishlv united.
WOODROW WILSON.
"I lllmatum lo Anarch?"
Premier Kercnsky's address to thi
Moscow Conference was described b;
officials h?re to-day to hav?? been in
"ultimatum to anarchy." tirent later
e.s*. was manifested in a declaration h\
the Premier believed to ha'-e leferre?
to the Pontifical peace proposal. Keren
sky said:
"A few days ago WB witnessed an
other attempt . t o conclude peace'
eouallv base, directed against, our Al<
' lie?. The latter rejected it with equa
indignation, anil in the name of th?
1 great Rassisn people I say to our al?
lies that it was the only reply we ex?
pected of them."
The quoted passage wa? connected
here with the Petrograd agency an?
nouncement concerning the Pope'? pio
po?al, which d?cil r e'l
*'ln view- f,f the fact that no mention
is made In the Papal note of I I
the Provisional l.overnment has unani?
mously decided to ignore the inter?
vention of the Pope."
Both the State l?epartment ?nd the
Russian Embassy profe??ed to have no
dispatches from Petrograd or Moscow
relating to the peace proposal, but in
P.U'sian circle? it was declared that if
the news di?patch from Moscow \va?
authentic, it mean? that Russia would
not tolerate the ignoring of her posi?
tion in the war, and could not counte?
nance ?nv proposition of peace which
detailed how certain settlements might
be arrived at concerning the disposi
tion of disputed territory, but failed
entirely to take cognizance of the
Russian territorio! seeaglod bj the
Au ?1 ro-Orman arnvr
Minlslerlal ( hsnfe? Kapected
It :, regard"! a? a certainty heie
?n?' theie Will ne ministerial chante?
mi Russia a? ? consfiju'iu- n' the
MOSCOW conference Premier Ker?n?k i
li beJiS.td to Irmvamlaysd bi? most im I
portant card in rolling the conference,
which i? compo er| not of the radical
BOCislistS, who, here?..fore, ha-.e claimed
to be more powerful than the sjfe I
merit .?.e'f. BUl h;,- ;, mBJOlitj of
eos ervativea, and th?- Provision's] Gov?
ernment, it is held would not bs a
n-'^ed its fortune! hefc. ? such ?n a
?emh'\ if H ha,I n.,i BOOB BSSUrod of
ts support
Th? conference marks the sliding of
moderation in tha treatment of Rus?
sia's internal disorders, and r.pe
cially in dealing with unsympathetie
organisations, v?hirh have only ham?
pered the national administration und
embarra?sed the military. Prom now
on, according to persons here, who have
been intimately in t.>u,-h with Ruaaian
affair1-, since the revolution, no toler?
ance w-ill be shown to riolent malcon?
tent-, t? unpatriotic agitators nor to
BSSOc'**>eni which threaten to disrupt
the government <"?? retard the reorgani?
sation o1" the army and threaten the
tucccs.s of the revolution.
Want Food Prices Fixed
TRENTON, N. .1 . Aug. 27. Governor
Edge waats th? government to fix all
prices tha' may be charged for food by
successive dealers from the producer to
ths eenaum? r,
'I am convinced," he s.,id yesterday,
"that the proper kind of led'ial food
control law- enforced to the letter will
produce some Startling reductions mi
food prices.
"1'rom my investigation in New Jer- ?
?ey 1 have not fojnd that the producer
is the mar. receiving abnormal profit?.
"The publication of their ex,-ess prof?
its has had some effect iinon retailer-.
Por examnle. last week in Atlantic C
they exacted 900 per rent profit on the
farm pri.-e. This wek it had dropped
to 13? per cent. Jersey City and New
York City were contest arfth 16 per
Argentina Awaits Reply
Hi ENOS AY RES, Aug. -'". Tha Ar?
gentine M m i?-, r '?, Germany, in ? r?b>
message te the Pore jn Office to-day,
said he expect! to receive ?lermanys
lepiv to Argentina's demand? regard
mg attacha ? ?argentine eeaaels by
jubmarines within forty-eight hours.
Vienna Rushes
Men West to
Halt Italians
Austrian? Admit Consider?
able Retirement on the
Isonzo Front
Cadorna Pushes On
North of Gorizia
Miers Bomb Bases as the
Enemy's Line
Stiffen
LONDON, Aug. 87. Fresh Austnsn
force?, believed to have been hurried
I into the Italian ??r theatre from the
Rumanian front, hare enabled the Au?
trian command to offer stiffer j-esist
r.nre to the Italian advance aero- tha
; BsinaisSB plateau. But Ijenera! < a
' dorna reports that the troop? of his
; Second Army have again overcome the
enemy defence ;.' various point? ami
;.re in a position to make new progre?.
toward thfl BSSterB e?lge of the ?ieat
t tablelan'l.
Home ??dmits that the struggle ?n this
M ter has assumed a renewed v olence
I due to "the extreme desperation of
I the enemy." That the fortunes or
the dsy were fluctuating is indicated
by the fact that the Italian War Office
lepoits the capture of only .'?00 pris
oner?, shout a sixth of th" number
I taken daily while the Austnans were
retreating after their man positions
ha?! been turned
Neverthelesi Vienna ronfe??e? s eon
sderable withdrawal alt along this
, front, and it is unofficial.* stated that
all the lira'..- A'..trian artillery has
hern removed to ChiSBOTBnO, more
than tefl M IBS Baal af th? brnd of the
|-on o River, The Italian army has
not pet been ab'" to bring its hea f
[..ope; up over the difficult g-ound and
tke battle is being fought on both side?
with guns of lijf'nt and medium calibre.
Italian ai' squadrons, assisted by
_French and British flier?, are carrying
the fight rf?o1uT*ly into enemy terri?
tory, and are not only bombing line?
of cominunleation throughou? the
length of ihe < hiapovano Vallev, but
are attark?ng troon formations on the
ha'tle line-. Rome deelares that they1
are "sowing de?truetion m the enemy
- snd Ineraosing 'he disorder of a1
hurried retreat."
V other pmnts ?outh'vard to the
Adua'ic Sea thfl ha'tle is rot raging
-o fiercely, though Italian Alpina eoB
tingante are attacking the slope- o'
>an Gabriele, a mountain stronghold
?OOtbeast of Monte Santo. This is si*
MA ' -ure to fall, as it is dominated by
the greater height o?* Monte Santo, up
whieB < a?lor?ia CSB no? bring hi? am!
lerv Alpine battalion ar? h!?o offi?
ciary reported to have do'ie rslisnt
rverk a' Nontfl 1 orale and Monte l'a
?'jhin.
A pau"* ha? fallen in the operation?
en the ?Carao platean, where Morn? li>r
niaua ?till Interposes its bilk befor?
?he Italian advance toward ?Trieste, bol
Cadorna maintain? hia ?weeping bom
bardnie!-.' o," 'he^e fortifications by land
and sea, and it is probable that when
I the battle In the north ?h.ll have ml
fieienUy concentrated t^e tastrisa ro?
servei in that region Italian sttack*
again?? t!ie reeky uplan?ls near the
?ccast will begin again.
-.
i 17 of Pershing's Men
In Hoboken Hospital
Are Invalided Home for
Mumps and Other Unwar
like Diseases
Seventeen member? of the American
Expeditionary Force have been inva
liiled home from France and are in St.
Mary'? Hoapital, Hoboken. it was
learned yesterday. Two of them have i
Ihe mumps, and the ailments of none
af the other fifteen are due to bullets, !
high explosives, gas or anything:? else
more wailike than kidney disease.
On their arrival in France, according ?
m ,
to I>r. Blanken.ship, house physician of
St, Mary's, 'he ?oldiers were subjected
ta a rigid physical examination. The
seventeen at St. Mary's were among
those sifted out, and after undergoing
treatment ?n France, they were, sent
back. Dr. Blankenship said that he
understood they were to be discharged
from the army when they were able to
leave the hospital.
Rumors that American soldier- had
been sent to the hospital had been rife
all day. 1? was leported that already
the American troops had been in action,
and ?hose were not wanting who could
pair'* an ensanguined picture of the en?
gagement and name the very trench
??action occupied by thfl Americans |)r.
Blankenship made thi -tatement after
he was infurmed of thfl rumor?.
The men in the ho-pital were mem?
bers of 'he Am contingent to sail.
The M heel of Better Advertising
Advertising is getting better because Business is
getting better because Advertising is getting better."
So Samuel Hopkins Adams summarizes in next
Sunday s story the results of bis investigations of local
advertising conditions in fourteen cities.
I An Adams story?vigorous, interesting. 1 ou
won't care to miss it.
Order vour I opy to-day?you'll be suie of it then.
?hc ^im?ay ?Tribune
Radicals Gaining Strength
In Fight Over Profits Tax;
19 Billions for Year of War
$7,000,000,000 To Be
Loaned to the Allies by
United States
Military Plans to
Cost $10,000,000,000
Great Issue of Securities Is
Discussed by the Lower
House of Congress
WASHINGTON, Aug. 21 rhs fall
I financial programme of the United
States government for the ''seal vear
ending Jene 30. 1918. which ?ill cover
'virtually 'lie ft rat year of the vvar.
was reveale.i to-dav by Chairman
Kitehin of the Ways and Means Coat*
nitteo of the House, -how ins; that II
will ici(Uire approximately $19,300,
1 000.000 to run the government during
the vear. or approximately fifteen
times as much as in ordinary vears.
At the same time, some detail?, not
: hitherto disclosed, m repaid to the
pending bond bill of |ll,fa?t*tt,4?!<)
were obtain?*,I. together with an ex
1 plaaation or an entirely new scheme
of raising money devised by the Trea?
sjrj Department and submitted to the
committee
According to < hairman Kitchn?
. est?mate?, baaed, it is understood, on
I figures submitted to him by the Tress*
. ur> Department, the Brat year's cost
j of the war to the United States, fx
.elusive of loans to the Allies and ex?
penses of 'he Shipping Board, Brill be
about $10,000,000,000. Loans, to the
Allies will aggregate $7,000,000.000,
the aspeases of the Shipping Board
abou' Sl.Onii.rtOO.nOO, and the ordinary
expenses of the government will i^el.l
the total to $l0.n00.00n.ii0O.
Sharp ( hange in Figure?
These figure.? are entirely different
from nny hitherto published on the
cos' of the War to the Fnitcd State-.
Senator Heed SssOOi -eme time ago
lit ?mated the eosl of the tir?? jear of
tha sar. Deluding loan- 10 'he SJliC .
at JI7.Onn.non.iHio. r.ater figure* ob
tained from the Treasury Department
made il appear that the total cos?
?rould l?e ahf,;t $14.0011.000,000.
In ralaing the revenue to meet this
great eoal the Treasury Department
has recommended, and the Finance
Committee? of *lie House and Senate
have tentatively aeread, ?hat the pro
SB of money to be raised bv '?i
ation to the monev to be raise,) by
bond is-u^- ?rill be a-bout 1 to 7. In
rvord ? fr,r every M i-ai-ed by
taxation to carry an the war hor?|:
e amount of $7 ?rill be au'hor
ta be paid by future generations,
ii- the money to he raised, all but
$2,000,000,000 i- pronH.ed for :,) h,|!?>
alreadf pas?ed or bills bow pending be
fore the Srnat? or before the Hou-e
committee. The pending bond bill be?
fore the Ways and Means Committee
?authorize? over $7,000,000.000 in bonds,
af which $3,0O0,00O,0?0O \n to take up
> bond- formerly authorized to be issued
at a lower rate of interest
Huge Sum Already Voted
A total of $5.0(10.000.000. plus $2.000.
nno.nno m certificates of indehtednes?,
aya- authorized several months ago by
the first bond bill. Of this amount
$3,000,000.000 would be tak^n up by the
pending bill, leaving $2.000.ooi?.ni'o in
bonds and $2,000,000,000 in certificates
of indebtedness which have been or
will be ssyed tO rai-e revenue.
In addition. S.'.OOO.OOO.OOO worth of a
new kind of bond, called war saving?
eertiflcatea, ia to be authorised by the
pending bill, along v. it h $2,000,000,000
more in certificates of indebtedaeaa, to
be used as u safety margin for the
Treasury Department, and not neces?
sarily to be issued.
Thi? would make a total ?f $4.000,
000.ooo in certificates of indebtedness,
half of which would be in circulation
practically all the time, and thus would
b? counted as permanent revenue, while
the other hall' would be used sal] when
necessary, and would not be counted as
a part of the permanent revenue.
In addition to the-e amounts, the
present ta I laws of the nation provide
for about $1,300.000.000 a year in reve?
nue. Assuming tha* the pending reve?
nue bill will contain a total of $:',,000.
000.000. this leaves about S2.000.000.000,
to be rai-ed by bonds not yet author?
ized or pending in the form of a bill.
This bond issue, (hairman Kitehin
?'ated. may be authorized at thi? ?es
Mon, but the changes are that it will be
put over unt ! '1 e next lOSsiOB of Con
| e
Fending Bund Bill
r ie pending bond b i i s the
Way? and Mea.--.? I ommittee discussed
inform.. :? ',, day, hut put over until
tO-morrOW, ?hej, Secretary McAdoo
will be called before the committee to
explain it. contains provisiofl for $11,
.".".?.s4.'..4?'0.
The piu r.pal th,ng whuh Secretary
McAdoo will be asked to explain when
he appeal? before the committee to?
morrow will b? the amount of interest
to be ?'vd on the forthcomiag bond is- ;
sue?, and the method by which it '
Would be tased Inder the bill sub?
mitted bv McAdoo t per cent interest
mould be allowed on this bond issue,1
?ith the conversion feature in the
bill, and nlso the stipulation that the
income "ron*, the-e bonds would be
s ibjec "o taxation in so far as they
uoti'd be affected by th* >upcrtax on
incomes,
Like *s|tiall Foreign Bonds
Tha "?;.!? laving? cert ? ate? provided
?h,- bill are much lihe short time,
small denomination bonds put o . by
the French sad British i*?vernments. I
It Itipulatod teat -urh bond- Ball
no' tun '.onger ?han ra *OBI and
'.,ai thai ?,-... ba discouatad ?a advaac?
War Profils Tax
\^aits on Contest
Of Senate Strategy
Delay Causes Confusion in Ad?
ministration s Plans
for War
By C. W. Gilbert
WASHINGTON, Aug. tt. The prog
rSSfl which the Administration il mak?
ing toward getting into the war effec?
tively breaks down m the most disap?
pointing way in the most unexpected
places. The Senate is approaching a
vote upon the question of taxes upon
excess profits. Thil is the biggest
??sue of war preparation -.nee the pas?
sage of the conscription. Fnormous
consequences depend upon ho* it ii
settled.
Vet to ?lav all was confusion. No
wnore was the guiding hand of the
Administration to be seen. The result
i? thus fa" left to a mere contest of
strength and parliamentary *-ki!l be?
tween the conservatives and radicals.
As the thing stand', unless the Ad?
ministration makes up its mir.d and
cuuses its wishes to be known before
the war revenue bill get? through the
Senate and out of conference, a ques?
tion of taxation that vitally affects
evrv one in this country, and one that
ought to be corelated to all the Ad
ministration's war polices will be left
' to the chance determination of legis?
lative c??nipromise.
To-day was devoted to msnreurre,
mostly planned m committee and cloak
rooms to gain advantage for one aide
or thp other in the ,,teps that will
lead up to the compromise, for neither
*-id? expects an out and out victory.
The ratei to be adopted finally will
be higher than those in the pending
bill, much higher probably. The chief
effort of the conservatives was di?
rected toward effecting the application
of cl?ture, something never success?
fully invoked m the Senate, and pro
po? id thia time, Ay Senator Borah
sharply -a'd. only t" cut off debate on
?* ar profits taxes.
( onserva'ive? Fear Delay
There ii evident fear *!? at if public
attention is helil upon this question
long enotjgh an a'hancd policy of
taxation will result. Outside o?" th's
there va? a conference la'e in the
evening of the conservatives, which
accomplished nothing. The result will
probably b* similar to tha? m the ?-a-?
of <;.? in?tome 'ax rate?, -.?her? the con
lervsti? ? -. > aiding to radical presstsro,
final!'-- ''rami'd the provision in th?
?ieiTV nmendmeo'
The only question i? just I10" strong
the radical aentimenl is and ju?t hovv
high it will feree th? rate?.
The fault with any ?och ehsn?cfl a?l
? il'ment of this vital que ?lion il that
taxe" on eXCOBS profit? ihottld be a
pari of the governmenr's pric-tiving
priigramme. Every one who has had a
i?a"d in framing that programme ha?
felt that the inequalities vhich would
result from Axing a ?ingle price for
each commodity, instead of paying cost,
plus a percentage of profit to each pro?
ducer, should be corrected by an ex?
cess profits tax. The line of price-fixing
on which the Administration ha ??-?
calls for a well considered tax policy.
And there is not one.
The bill as it now stands pro7ides
for an average tax of 7-?1 per rent on
BX?eesi war profits, That percentage
will not bring about an equality be?
tween *he favored and the ill-placed
producer upon whose product the gov?
ernment, to avoid the costly and i-otii
plicated mechani?m necessary for a
cost plus policy, fixes one and the same
price.
Knormoo* Profits Made.
1* has been admitted that with rate?
fixed in the present bill certain steel
and powder makers will still have
hugely ?wellen profits, in one instance
M0n.00n.000, c\en after they have paid
their exc?s- profit! 'ax The British
rates ?;pon war profits run as h-gh as
?So per cent.
The radical.? in the Senate Brill make
an effort to put our rates on a par
with the British. They expect to fv.l
Thev may succeed in getting them to
M per cent for the maximum. The
rates, however, should not be deter?
mined this way. but should bear an
intimate relation to 'he price-fixing
plan- of the Administration and to ?he
socal purposes it ha- in view. Per?
haps they will before ?he House and
the Conference committees of both
homes are through with the legisla?
tion.
Things move s;ow-;?r here, bu* have
a way of getting themselves dont.
of maturity at any time in the dis
11-etioii ef rhr Secretary of the Treas?
ury. Se persea Would be permuted to
buy n.or- than 4100 worth of the bonds
at one time, and it would be illegal
for any person to nave in his pos?
ses-ion more than i\.>K)0 worth of the
bonds a' any time.
Thi - ri'ovision was made inas?
much a- || ,, the intention of the
Treasury Department to make these
bonds -ittractive to ?mull investor?
through '.he payment of a liberal in?
terest rate and by i- suing the bonds
la small denominations, ?uch ?- ||
and $10. The amount of interest to be
allowed ? I ?uch bor.d? is not pre?
scribed in the bill, but il left to the
?liscretior. ?if the Secretary of the
1 reasury.
Prom an suthorital re -ource it ,s
learned that the plan i? to put -r.
bond- eat through be postal lavinga
ly.tem a far as possible
They "ould bear probably .'> per
cent interest., although thi- qua t. ? > ? i
bos sol !>???n ttefinitelj determined
oer.d.ne tue p?*?a?' .?:' t.ic bill.
Johnson Offer? Amend?
ment to Levy 80 Per
Cent on Gains
Threat of Cl?ture Is
Quickly Abandoned
Attempt to Rewrite Section
of New Measure Is Made
as Desperate Alternative
?;.<v-U- CiXT??pe"d-l,c#
WASFII\t,r?.>\. Aug. XT.- Firsl BBSfe"
rng to imposa clot-ire and ?o choke off
the radical wealth con icnotionist?,
then disavowing this deeire, and finally,
with the certainty of large increase ? .n
the ?chedule of war protits taxe? con?
fronting them, attempting to tcwrife
the war prc'it? section to make certain
burden? easier, the rap.iily shrinking
band of conservatives put in a har.l
day in the Senate,
I.ate in the session BOBBtOf Hii.im
Johnson, of California, Introduced tire
i most radical wealth conscripting
i amendment yet propn?ed to th" r< ? -
enue bill. It v?rou!d lake 7.1 per cent
of all war proflM. Booster .Ioho?on
*aid the net result ?would be to t.ikc
f>n per cent, a? the corporation? are
aiready subjected to ethel taxation.
Earlier, vvhi!o the Scnitto laboriously
debated ' opoaed ? first
and seco n . . ?? tage, Senators who
j object to CreaSB ?B 'he war
profit? leel "ii >.' the bill CSBVSSSOd
tha situation, getting ?ignatuios to *
petition for eloture. Ahou' ?'? o'clock
this afternoon they ha?l obtained fifty
six signature?, altUou/h anly sixteen
are nee???ary. Under th? -urface the
radicals wer* dalighted m 'h this pro
potal.
"Let them fnrce e'oture on a?." said
on? Senator who advocate? tha highest
possible t*T on war profits. "We will
tell the country they did if to shut i; ?
i n Meanwhile we will ha'-e ninetv lil
hours under the cl?ture rile in which
to pepper them, and we v<?!! ,lo i'."
Benster Rorah, however, taking the
po?ition that a debate on the ??r
profit? which can be stretched out a
little longer than tie ninety < hours
will have the effer? et bringing p'iblic
opinion to bear 'o thfl BO B( ? (?ere
much h'iiher impost'. BB ?? ?ill be
ob'ained, opposed pe?--- ? g th? r?i"
ServativoS to put their programme < | -
Rorah Want? lo Knn?
?o he calmly took the ! ,| .ff |
?lUiring in the mm i ; . , ? ? ? t hfl
Senaten circulating the cl?ture peti
t 'in intended to pr??er
"I would like Ii BOO ' ha said,
" eh? M it : : ?he intenti"
planning to impose eloture to pr. . ?
the petition. I undei -, end.
lis? some for' v signal I am cm
o us to know if eloture to he invoked
for the first time in the Senate o- thfl
e?"C of the discus' ???i of 'he propo?al
to lay additional '??r afl war pr
Sena'oi Kenvon, who had b'?- I i
earnest BBRTorsstion Brith Senator
Borah . moment prevtou?, rose ?n mock
amazement and a'ked if hfl had under,
stood the Senator from Idaho cor
reet'y.
"I". it possible," he sad. as t'lough
utterly shocked, "tha'. ' il propo?rd
to force cl?ture and shul off debs'?
when almo't ever,- item "f the br'l ???'
been di-poied of ?se the w.r profit s
section ""
"That is my underMaru!ing," *aid Mr.
Borah.
Senator Lswfs, thfl Democratic whip,
?orang into the breach. He awured
both Senators tha? the idea had been
only to gtt up the pettion with I ? es*
of forcing cl?ture if a frlibu.-'.er ?bould
ensue.
"Does the Senator from lllisoil SOI -
?ider that a filibuster ? m progr?s.? V*
demanrled Mr. Brrah.
"Quite ths contrary," ?aid Mr. I.ew ?.
"and while we would like to save tun?
the submitting of the eloture petition
was withheld for the very reason ?ug
gested by the Senator from Idaho
that Senators wishing to discuss the
war prcfits secticn of the bill had not
yet nad ample opportunity to do *o "
Hiram Johnson Seeks Light
At this point ?another ron-.pir.tor
wi?h 3or.h and Kenvon played hi?
part.
"Let me understand this." said Me.
Johnson, of California "I am not ?u'
ficiently familiar with the Senate rule?
?'an it be possible that it ia proposed
to impose cl?ture at a ?.me when w?
are about to take up ?he problem of
taxin;? the ?wollen var-made for?
tunes J"
"I feaicd so." ?aid Mr Rorah. "bul
the Senator from lllinoil a??ures me
such i? not the case "
Senator Smith, of Georgia, then ?aid
that he had refu?ed to sign the petition
and added that it had only about ais
signature?, which ;? ?bout fifty under
the actual number obtaine?l.
The "Maximalists," as the group
wishing to place the war profits
taxe.? as high as they can get them
is being called, were then attacked
from the rear by Senator Townsend. of
Michigan, who yields to none in de?
siring to get .11 the tax.? possible
out of w.r t.xes and big: incomes.
"I ? gned that petition." he ?aid, "but
the Senator cannot embarrass me. I
signed ?t because the cause 1 h.v?
most at heart raiai'ig the money to
tight this war is b-ing injured every
day bv ?he delay here. After that rule
is put into effect there remain ninety
six hours for discussion of war profite,
and I 'Mil vote to make them a- high
as the Senator from Idaho 1, for one,
?oul'l like to confine the diSCUastOB t"
the noint Before us the question of
taxing -.?jr profil I think Ihe Senat?
i? iea.lv to vote on that ?u?--' oi, BOW."
SoaalOI ?ha/i?.-- tai CtaltaSBaSSai also

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